The performance of Indian benchmark indices during FY23 has been a mixed bag. In the first nine months of the current fiscal year, the Nifty 50 index returned 7.40%, while the S&P BSE Sensex produced a return of 7.7% during the same period.
Nonetheless, the markets began to correct afterwards due to continuous FPI selling, the sell-off in the Adani Group stocks, turmoil in the global financial system, elevated geo-political tensions and the depreciation in the Indian rupee.
Foreign investors continued their selling spree in Indian markets and pulled out ₹5,294 crore in February and ₹28,852 crore from Indian equities in January, making it the worst outflow since June 2022, when they had pulled out ₹50,203 crore.
Analysts are citing multiple reasons for the pullback, such as the expensive valuations of Indian shares over their global peers, the reallocation of funds to China and Taiwan for their relatively cheaper valuations, and Beijing's reopening, easing COVID-19 controls.
In addition, the collapse of the California-based Silicon Valley bank on March 10, 2023, added additional woes to the Indian markets. This has sent shockwaves across the global financial system and weakened the banking sector's sentiment.
Against this backdrop, nine stocks in the Nifty 50 index stood out as strong performers, delivering returns in the range of 20–54% in FY23.
With returns of over 50%, ITC, an FMCG firm, emerged as the top gainer in the Nifty 50 index. So far in FY23, the stock has surged from around ₹249.20 to ₹378 levels, logging a nearly 51.68% rise in this period.
Out of the 12 months (including March), the stock recorded 10 months with positive gains, with July being the best month with a rally of 10.80%, followed by January with 6.91% returns.
Following the company's strong Q3FY23 performance, the stock scaled to an all-time high of ₹394 apiece on February 23, 2023, and it also outperformed the Nifty FMCG index by 25.68%, which generated a return of 25%.
Mahindra and Mahindra were another top gainer in the Nifty 50 index. The stock has climbed from ₹793.35 to ₹1,150 in the current fiscal year, generating a return of 45%.
This strong performance of the stock was attributed to its strong fundamentals, a boost in capital expenditure, a drop in raw material prices, and a significant rise in sales that have made it the second-best performer in the index.
The stock crossed the Rs. 1,000 mark for the first time in March last year, and it has since held that psychological level to this day.
Britannia Industries stock was another big mover in FY23, gaining traction on November 04, after the company reported its highest-ever quarterly revenue in the second quarter of this fiscal year.
The momentum further continued after the company entered into a joint venture with French company Bel SA and Britannia Dairy (BDPL) for the development, manufacturing, marketing, distribution, trading, and selling of cheese products in India and certain other countries.
Overall, in the last one year, the stock gained 33.41%, appreciating from ₹3,148 apiece to the current price of ₹4,200. On February 03, the stock marked a new record high of ₹4,596 following another strong quarter performance in Q3FY23, with its net profit soaring to ₹932.40 crore, an increase of 152% YoY.
|Scrip Name||% Returns in FY23|
|Mahindra and Mahindra||45%|
|Larsen & Toubro||22%|
The next on the list was India's largest power generation firm, NTPC, whose shares delivered a stellar return of almost 27.64%, moving from ₹135.30 to ₹172.70.
The stock's 52-week low and high levels were Rs. 133.4 apiece and Rs. 183 apiece, respectively. Taking Friday's closing price into account, it has risen 29.14% from its one-year low.
Domestic brokerage firm Sharekhan recently maintained its "buy" call on the stock with a target price of ₹200, indicating that it expects the stock to continue its bull run. The brokerage highlights three key factors for the positive outlook on NTPC.
First, the brokerage noted that there is a high demand for electricity in the country, which will help NTPC grow. Secondly, the company's expansion in the renewable energy segment is viewed positively by the brokerage. Finally, the reduction in outstanding discom dues will strengthen NTPC's balance sheet.
Hindustan Unilever stood as the fifth-top gainer in FY23; the stock has climbed from ₹2,015 to ₹2,480, generating a return of 23.11% in this period. Following the acquisition of a majority stake in OZiva and a 19.8% stake in Wellbeing Nutrition, the stock hit a 52-week high of ₹2,724.70 on December 09.
Brokerage firm Phillip Capital maintained a "buy" call on the stock with a target price of ₹3,200 per share. The brokerage continues to maintain its positive stance given management's focus on driving business growth via consistency in strategy and best-in-class execution capabilities.
Other stocks, including, Eicher Motors, Larsen & Toubro, ICICI Bank, UltraTech Cement, and Axis Bank also witnessed gains in the range of 16–23% in the current year so far.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.